How to Calculate Cost Per Page and Save Money Printing
computershopper.com
One of the most brilliant financial models in modern history—the “loss leader”—was pioneered in 1902 by a man with the improbable name of King Camp Gillette. If that name seems familiar, it’s because the company he founded manufactures and sells billions of disposable razors every year. Although Gillette didn’t invent the safety razor, he turned it into a money-making juggernaut. This he did by designing the safety razor with disposable blades. Gillette made his fortune not by selling the razors themselves—which his company sold at a nominal price or gave away for free—but from the sale of the disposable blades.
Communications companies also use a form of Gillette’s “loss leader” model to make piles of money. They give you a free phone (or heavily subsidize its cost), then reap profits by selling you air time and a host of related services. Similarly, mainframe manufacturers used to throw in free software with the purchase of their systems, while some developers of high-end software bundle in free hardware when you buy their programs.
The same “loss leader” financial model applies to inkjet and laser printers. Most printer manufacturers make their money not from the sale of the printers themselves, but from selling you ink or toner cartridges. “Printers are so cheap because they’re subsidized by the manufacturers,” says Magnus Felke, director of worldwide product marketing for Kodak Inkjet Systems. “Manufacturers hook [users] and lock them in with low-cost printers and high-price ink cartridges.”
What this means is that simply looking at the base price of a printer you’re thinking of buying won’t tell you much about the true cost of owning and operating it. For that, you’ll need to do some math. But no need to fret—the calculations are relatively simple.
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